Expert predicts growth for digital gold by year-end

The current decline of the leading cryptocurrency is linked to a four-year cycle and profit-taking by long-term holders. Anthony Scaramucci, managing partner at SkyBridge, believes a bullish phase will begin in the fourth quarter of this year.

“We are in a four-year cycle. There are major players, veterans who believe in it. And what happens when people believe in something? They create a self-fulfilling prophecy,” he said on The Wolf Of All Streets podcast.

According to the expert, spot Bitcoin ETFs have smoothed out cyclical fluctuations due to an influx of institutional funds. High demand has reduced volatility, but historical patterns have not disappeared entirely.

At the same time, some analysts believe that four-year cycles have lost their relevance.

Expectations vs. Reality

Scaramucci acknowledged that he expected the price of digital gold to reach $150,000 by 2025, like many others in the market. The optimism was fueled by Donald Trump's election as President of the United States.

However, a sharp drop in October “shattered” the prevailing consensus. During a record liquidation volume, Bitcoin plummeted from a historic high above $126,000 to $60,000.

The expert noted that markets often move against prevailing sentiments, as seen in early 2023 after the FTX exchange collapse.

“The bullish phase began at a time of widespread indifference and apathy. The current drop is a normal correction, just like in the past,” he added.

Scaramucci suggested that Bitcoin's price will mostly move sideways for much of this year, with growth resuming only in the fourth quarter.

Market Developments

Over the weekend, the price of the leading cryptocurrency fell below $69,000 amid escalating conflict in Iran. The war has now entered its fourth week and is weighing on the markets. Trump threatens new strikes on the country's energy infrastructure.

As of this writing, Bitcoin is trading around $68,400. The asset's price has dropped 1.1% in the last 24 hours and nearly 8% over the past week.

Ethereum's price has fallen to $2,000, down 3% in the last 24 hours.

According to CoinGlass, the liquidation volume exceeded $383 million, primarily affecting long positions. A popular market sentiment indicator signals “extreme fear.”

On March 23, the Asian market opened lower: the Japanese Nikkei index lost 3.7%, the Chinese Shanghai index dropped 4%, and the Hong Kong Hang Seng index fell 4.2%. The Australian S&P/ASX 200 declined by 0.8%.

The price of gold fell nearly 7% to $4,128 per ounce. Silver dropped 8.9% to $61.9.

Brent crude oil prices surged 2% to $108. As of this writing, WTI is trading at $100, gaining 2.2% in a day.

ETFs

Meanwhile, exchange-traded funds based on the leading cryptocurrency have recorded four consecutive weeks of inflows. From March 16 to 20, these instruments collectively attracted $95.1 million.

However, positive dynamics were observed only on two of the three trading days.

Ethereum ETFs ended the week with an outflow of nearly $60 million.

Products based on XRP and Solana received $600,000 and $21 million respectively.

Recall that on March 18, Alphractal founder Joao Vedson predicted that Bitcoin could fall below $60,000 if it fails to hold the $69,000-70,000 range.